Current issue: 58(5)
When Finland attained independence in 1917–1918, about 65% of her population made their linving from agriculture and only 17% from industry. Despite the fact that most sectors of the modern forest industry, i.e. sawmilling, pulp and paper making as well as plywood industry were then in existence a considerable proportion of timber was exported as roundwood.
It was reasonable to assume, however, that further economic development would reduce the roundwood exports to provide raw material for industry. The present paper investigates the Finnish roundwood exports in 1921–1986 largely from the point of view of this hypothesis. Examination of statistics is focused on the change of volume of exports in the major categories of wood, changes in the trade policies of consumer countries, changes in competition between exporting countries and changes in Finnish export policy.
The PDF includes an abstract in English.
A Commission was appointed to examine the significance of pulpwood exports from the political-economic and social point of view. A survey was made of the development of woodworking industry in Finland. The article includes a detailed review on paper industry in Finland and abroad, pulpwood resources in Finland and outlook of the industry. The export of pulpwood was significant in 1925-1927, the most important country being Germany. The commission notes that It would be more profitable to refine the wood into more expensive products. It does, however, not see it necessary to restrict export of pulpwood. If restrictions are considered necessary, prohibition of export is a better way than export duties.
The best way to promote domestic paper industry is to increase the supply of Norway spruce (Picea abies (L.) H. Karst.). Measures are suggested to increase the productivity of the forests through forest improvement. The annual increment of spruce is calculated to cover the consumption in near future, provided the export of pulpwood does not amount to 600,000 m3, and the local demand of pulpwood does not exceed 7.8 million m3 annually. The Commission proposes that state ownership of forests is increased, forest management is intensified, and restrictions of forest industry to acquire forest land are removed.
It suggests also reliefs in taxation and import duties on fields related to transport, and equipment and raw materials needed by the paper industry.
The PDF includes a summary in English.
Tar was an important export article in Finland, then a part of Sweden, in the 18th century. For instance, in 1640 half of Finnish trade consisted of tar. In other countries, like Norway, Poland, Archangel in Russia, and North Sweden, burning of tar was minor compared to Finland. In Finland, tar was produced of young pine trees. Tar production concentrated in more remote locations of the country, where it would be too difficult and expensive to transport timber and wood products. The cheapest products, such as wood, boards and planks, were produced on a coastal zone at farthest 30 km from the coast. Tar was produced in the zone beyond the coastal district. The inland parts of Southern Finland were, however, hilly which made even the transport of tar difficult. Tar production ended by the middle of the 19th century when wooden ships were abandoned, and the value of forests and other wood products increased.
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This study concentrates on claims made against Finnish shippers or referred to arbitration by foreign buyers. The material is collected from two inquiries on claims and arbitrations, sent by the Finnish Sawmill Owners’ Association to Finnish sawmills engaged to exportation in 1954 and 1958.
On average the claims concerned about 5% of the sawn goods exported from Finland. They affected about 3% of the deliveries from the large sawmills, 10% of the deliveries of medium-sized sawmills and 15–20% of the small sawmills. In large consignments of raw material, variations in quality are not so marked as in smaller ones. Also, the grading of goods is stricter in the larger sawmills, and as they have well-established business relations, they have better opportunities to select goods with a view to demand of the buyer and the marketing areas.
The ratio of goods claimed was least in exports to remote countries, on the Western European markets in exports to Great Britain and the Netherlands. In Belgium, the ratio was high. In 1954 and 1958 approximately 12% of the claims were referred to arbitration. The bigger the sawmills, then on average the smaller the ratio of cases of arbitration in the number of claims. In Belgium, disputes have had to be settled by arbitration most frequently. Over 90% of the claims were made because of defects in quality or condition. About 5% were in respect of the specification of dimensions, and only 5% were related to other reasons than the good themselves. The sums paid for claims connected to the goods in 1958 represented only 54% of those demanded by the buyers. It would perhaps be advisable to consider the formulation of generally acceptable rules of the grading of export timber according to categories of shippers with definition of the minimum standard for each grade.
The PDF includes a summary in English.
The investigation examines export sales of Finnish sawn softwood sales in 1951-1958, concentrating on the volume of the sales. The material was collected from the archives of Finnish Sawmill Owner’s Association and the Finnish Sawmill Control Organization and the annual reports of the former. Correlation analysis was used in assessing the interdependence of the monthly sales volume and the price, and opening sales and the total sales volume of the year.
A slightly negative correlation was seen between the sale price and the monthly sales volume. Goods sold at under average prices are more abundant than goods sold at over average prices. Generally, with a rising price trend, the annual sales volume increased, but with falling prices the situation was reverse. The sales volume has been dependent on the business cycle development of prices. There was positive correlation between the opening sales and the total sales quantity for the year. The sales volume was at its maximum in the period between November and January, and at the minimum between March and September.
The time of the sales made to different countries differed little judged by quarterly statistics. It seems that the major shippers have generally concluded opening sales first. Northern Finnish shippers and the small shippers of Southern Finland have sold proportionately least during the last quarter. In general, the poorer the qualities in question the smaller on an average the proportion of opening sales but the greater the share of clearance sales.
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The aim of the investigation was to estimate the changes in the price ratios of different tree species of sawn timber, timber sizes and qualities, the ratios of the prices obtained by different shippers and from different countries, and their changes, especially the trends and business cycles. The data can be utilized in the organization of sawing and the drawing up of the price scales. The price ratios were calculated by taking 100 as the basic quantity and calculating the values for the other quantities accordingly, the values are called price indices. The data is collected from the sales reports in the archives of the Finnish Sawmill Owners’ Association.
Comparing the ratios of the basic prices, the prices of unsorted pine goods by shipper B (the leading marks of Northern Finland), were considerably higher than the others. The North Finnish pine goods are of the best quality in Finland. The price differences between the other shippers were small. The prices of unsorted spruce goods differed very little with different shippers. In some years the basic prices obtained for pine from different countries showed considerable differences although, in the overall view, the differences were small.
In the leading marks of Northern Finland, the differences between pine and spruce prices was greater than the other price differences. The quality of pine logs in Northern Finland is extremely high. During the periods of prosperity, the price difference between pine and spruce was relatively smaller than during depression. With spruce goods, the relative price difference for the qualities is smaller than with pine goods. For the both species the relative price differences diminished with the increase in the basic price. In the broadest sizes of unsorted pine goods, the price difference of the inch class is much bigger than in the small sizes. This is true especially for boards. The relative price difference between boards and battens increased distinctly with the advance in the basic price. A similar, though not as clear change took place in the price ratio of board and 7” sizes. The price differences between battens and boards are much smaller for spruce than for pine. The trends of the price indices of the different sizes show from the middle of 1920s and as far as the 9” u/s pine sizes very gentle, and in regards of the corresponding spruce sizes, a fairly sharp rising tendency.
The PDF includes a summary in English.
The objective of the investigation was to study the trends and fluctuations in the composition of sawn goods, changes due to business cycles, and casual fluctuations. The subject is confined to sawn softwood export to Great Britain, the Netherlands, Belgium and France (The North Sea countries) in 1920-1952. The data was based mainly on statistics of the Board of Customs, Series of Foreign Trade, Finnish Sawmill Owner’s Association and the Finnish Official Statistics.
The North Sea countries took 75-85% of the sawn softwood exported from Finland before World War II, and 50-70% of the quantity exported since the war. Sawn softwood export from Finland is almost exclusively long and small-dimension timber. The composition of the export from Finland to the North Sea countries was defined already during the 1900th century, and no big chances were observed even during the period of 1920-1952. The only definite trend was decrease in the proportion of u/s grade.
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The purpose of the investigation was to examine the seasonal pattern in Finnish export shipments and export sales of sawn softwood in 1927-1953. Statistics concerning shipments have been obtained from the Board of Customs, and material relating to sales has been provided by the Finnish Sawmill Owner’s Association (now Finnish Sawmills Association). On the basis of original monthly statistics, 13-month moving averages were computed. Finally, a seasonal index was calculated.
According to the results, the export shipments have a fairly apparent seasonal pattern with very low figures from January to April, a peak from June to August, and thereafter a gradual decline up to the end of the year. There are also considerable variations from year to year but in general the exports follow this rhythm. In contrast to export shipments the seasonal pattern of export sales is characterised by significant irregularity. Market developments and speculation play a far greater role than the seasonal factors. Indeed, a seasonal character in export sales can scarcely be discerned.
The Acta Forestalia Fennica issue 61 was published in honour of professor Eino Saari’s 60th birthday.
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The investigation studies the development of a logger’s daily earnings, a sawmill worker’s hourly earnings, saw timber stumpage prices and saw timber export prices, expressed in marks in Finland in 1913-1953, concentrating upon the trends of real value.
Although worker’s earnings in forestry and sawmilling have developed differently especially in the 1920s, the late 1930s and the early 1940s, their general long-time development has been very similar. On the other hand, the stumpage prices increased in real value much sharply than wages before the World War II. The real value of stumpage prices dropped because of economic regulation measures in the 1940s until regulation was abolished and the Korean War boom raised them in 1951, to fall after that. The development depends partly of the development of export prices for sawn timber.
Without changing the distribution of income from exports the real value of labour earnings, measured by export prices, may rise at most at a pace corresponding to the productivity of work. In logging there has been no actual increase in the productivity in the 20th century. As the increase in the productivity in timber transportation has probably been absorbed in increased wages and capital costs in the branch, a rise in forest labour’s real earnings and stumpage is possible only by means of a rise in the productivity of sawmilling or a change in the distribution of export income. It seems that from the end of World War I up to the middle of 1920s this increase of productivity and in export prices of sawn timber was shared only by capital and possibly mill labour. After that up to World War II stumpage prices rose so steeply that they swallowed the entire increase in productivity and reduced capital’s share of the export price. In the 40s the level of earnings followed the trend of productivity in industry, made possible by a sharp reduction in stumpage.
The Acta Forestalia Fennica issue 61 was published in honour of professor Eino Saari’s 60th birthday.
The PDF includes a summary in English.
The article summarizes import and export of timber and manufactured wood products in Europe before the Second World War, and outlines which are the opportunities of import and export after the war. The evaluation is based on statistics of 1936 and 1937. The export balance of Europe was positive; when all the timber assortments were included, Europe exported almost 10 million m3 more timber than it imported. Export and import of round timber were almost in balance, whereas export of paper products was about 12 million m3 larger than import. Consequently, European forest industry reached its magnitude before the war through export overseas. Foreign markets have been important especially for countries like Finland and other Nordic countries.
The war has disturbed the markets. In a scenario where Europe remains a closed sub-area in the global market, there is 10 million m3 excess of timber and wood products. Within Europe, United Kingdom is the greatest importer of timber and manufactured wood products. If UK was excluded from the European market, it would mean a big change in the export and import balance within the area. In 1936 and 1937 the import would have been only 45% and 55%, respectively, of the export if UK is not included in European numbers. If also Russia is excluded from the European sub-area, it would affect especially the export of round wood, sawn timber and plywood. Nordic countries have accounted for about 80% of European paper products export before the war. According to the article, Finnish wood resources do not allow big increase in sawn industry. However, there is potential in increasing demand of pulp in continental Europe in future. In general, Finnish forest industry would have to decrease the production, if the markets would be limited to the European sub-area.
The PDF includes a summary in German.
The export of roundwood from Finland was studied based on the official statistics of foreign trade. The volumes were converted to solid volumes under bark. Roundwood (logs and masts) or raw timber trade consisted mainly of saw logs. The main tree species was Scots pine (Pinus sylvestrs L.) and Norway spruce (Picea abies (L.) H. Karst.). The annual volumes varied from 29,200 m3 in the war year 1918 to 657,200 m3 in 1924. Before the World War I the roundwood was exported mainly to Sweden and Russia, after the war the trade to Russia ceased. Also split spillet was a significant export item before the war. The export peaked in 1916 to 3 million m3, but decreased after the war to 30,000‒40,000 m3. The most important export item in the group of hewn timber has been Egyptian rafters, with annual export of 15,000‒284,600 m3 with the exception of the time of war. The export of spars exported to other countries than Egypt was highest before the war with 125,000 m3. The export of sleepers varied strongly, peaking in 1922. The total export of roundwood varied from 131,000 m3 in 1918 to 4.3 million m3 in 1927. Roundwood has mainly been exported to the European countries. Before the war, the main trading partners were United Kingdom and Russia. After the war the share of United Kingdom was nearly half of the volume, and Russia was replaced with Sweden.
The PDF includes a summary in German.